39th business report - paramountbed-hd.co.jp
TRANSCRIPT
39thBusiness ReportFrom April 1, 2020 to March 31, 2021
PARAMOUNT BED HOLDINGS CO., LTD.Securities code: 7817
Top Message Top Message
President�and�Chief�Executive�Officer
Tomohiko�Kimura
Business Results for the Fiscal Year under ReviewWith regard to consolidated business results for the fiscal year under review, net sales came to ¥87,171 million (up 5.8% year on year). This was the result of factors such as favorable sales of products such as the “Rakusho Plus Series,” which is a core bed product for home care that was launched in August 2020, and “cococia Riraku flow,” which is an air mattress released in October 2020 that carries out bedsore prevention, such as weight settings and posture changes, in a completely automatic manner, in addition to Paramount Care Service’s solid performance in the rental wholesale business for assistive products and projects for the emergency preparation of hospital bed in some overseas areas, despite various impacts in Japan and overseas, such as restrictions on sales activities due to the spread of the novel coronavirus disease (COVID-19).In terms of profits, operating income came to ¥11,582 million (up 16.9% year on year) due to the sales of new products contributing to the improvement of the gross profit margin. Ordinary income came to ¥13,461 million (up 32.7% year on year), while net income came to ¥8,611 million (up 22.3% year on year).The Company paid a year-end dividend of ¥53 per share, which is an increase of ¥3 over initial forecasts, for the fiscal year under review. As a result, in combination with the interim dividend of ¥50 per share, the annual dividend came to ¥103 per share.Furthermore, the Company conducted a share split at a ratio of 2 shares per common share with April 1, 2021 as the effective date, aiming to expand its range of investors by increasing the liquidity of its shares. From the perspective of stable and
sustained returns to shareholders, the Company intends to pay interim and year-end dividends of ¥26 and ¥27 per share, respectively, resulting in an annual dividend of ¥53 per share for the next fiscal year.
Future Business DevelopmentRegarding the medium-term business plan, which would last until FY2022, the Company extended the term by one year until FY2023 in light of the impact of COVID-19, and announced numerical targets in April 2021. In addition, we uphold a basic policy of the “expansion of current business,”
“building of a foundation for reform” and “formalization of the health promotion business,” and will further enhance our approaches, such as ESGs, for environmental issues and social contributions. We will aim for net sales of ¥89,000 million and operating income of ¥12,000 million in FY2023 by positioning the strategic investment period for medium- to long-term growth, and increasing system-related investment, new business investment and capital investment.Furthermore, the Company will apply the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29) from FY2021. As a result, sales related to items that were purchased and sold will decrease in comparison to the previous figures. We will aim for net sales of ¥81,000 million and operating income of ¥10,600 million in the current fiscal year after applying this accounting standard, etc.Going forward, we humbly ask our shareholders for their continued understanding and support.
We create comfortable, healthy environments through cutting-edge technology with a human touch.We extend our heartfelt thanks to our shareholders for their ongoing support.The Company hereby provides reports in relation to the overview of business and the financial results for the 39th term (from April 1, 2020 to March 31, 2021).
“cococia Riraku flow (cleaning type)”
The “cococia Riraku flow” is an air mattress that prevents bedsores by using AI functions to assume weight and physique and automatically adjust pressure. It is loaded with functions that carry out posture changes in a completely automatic manner and functions for retaining posture, and possesses the Company’s highest-class capability to disperse body pressure.
Launch of new product “cococia Riraku flow”
External view of new mattress factory
It is a dedicated mattress factory which has a total floor area of approximately 3,900m². The Company improved production efficiency by approximately 30% through its integrated production system that connects the three processing areas with one line.
New mattress factory at Chiba Factory began operation
This system can give vocal notifications via headsets about information detected with “Nemuri SCAN.”This will lead to increased operational efficiency for all nursing staff as they will be able to understand detected information without checking terminals.
Launched system that connects “Nemuri SCAN” and intercoms
■Establishment of Sendai Maintenance Center of Paramount Care Service
■Establishment of Nagaoka Branch of Paramount Care Service
■Launch of new product “Nemuri SCAN eye”■Relocation of Shonan Branch of Paramount
Care Service
■Relocation of Paramount Bed Saitama branch
■“ALiUS Series ICU Bed” wins Good Design Award
■Development of “Prep-palette” for pediatric care
■Launch of the infrared sensor version of the new product “Mimamori SENSE α”
■Launch of the “Rakusho Plus” series for home care
■Paramount Care Service began rental of “Let’s Walk,” Paramount Bed’s new product
■Added functions to detect snoring and give a “sleep point system” to the Active Sleep app
“Nemuri SCAN”system
“Clear Talk Com”system
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Topics Top ics
Special Feature Spec ia l Fea tu re
Started to Air New Commercial ~Advertisement of Superiorly Designed Electric Bed That Can Also Be a Nursing Bed~
In March, the Company updated the TV commercial for the “INTIME Series” electric bed for general household use, which is superiorly designed and it can also become a nursing bed when necessary. With the key phrase, “Closer to life, beds become like this,” the Company introduces a function that can monitor the bed user via the dedicated app and a feature where the bed can be turned into a nursing bed by showing couples and families trying beds in showrooms and sales floors. The Company will aim to further expand the health promotion business by increasing recognition together with the
“Active Sleep BED” commercial.
Started to Air Radio CommercialIn�March,�the�Company�began�advertising�on�TBS�Radio’s�“Imoto�Ayako’s�Suppinshan”�(every�Wednesday�from�9:30�p.m.).�There�are�two�versions,�the�“Sleep/Wake/Live�version”�(40�seconds)�and�the�“Lullaby�version”�(20�seconds),�which�express�the�Company’s�corporate�stance�of�contributing�to�society�through�the�development�of�various�beds,�from�those�for�the�medical�and�nursing�care�businesses�to�those�for�the�health�promotion�business.
TV TOKYO “Monday Premiere 8”TBS
(every Monday from 8:00 p.m.)
(every Wednesday from 5:50 p.m.)“N Sta”TV TOKYO “Naze Soko?”TV TOKYO
(every Thursday from 9:00 p.m.)
(every Friday from 9:00 p.m.)“Tokoro-san no Gakko dewa Osietekurenai Sokontokoro!”TBS “Hodo Tokushu”Nippon Television
(every Saturday from 5:30 p.m.)
(every Sunday from 6:00 p.m.)“Shinso Hodo Bankisha!”
Programs currently broadcasting the Company’s commercials are as follows:
Financial Review F inanc ia l Rev iew
Consolidated�Financial�StatementsConsolidated Balance Sheet (Summary)� �(Millions�of�Yen)
Previous�Fiscal�Year
(As�of�March�31,�2020)
Current��Fiscal�Year
(As�of�March�31,�2021)
Item Amount Amount
Total�current�assets 76,848 86,144
Total�non-current�assets 67,409 68,213
Total�assets 144,257 154,358
Total�liabilities 37,191 40,535
Total�net�assets 107,066 113,822
Total�liabilities�and�net�assets 144,257 154,358
Consolidated Statement of Cash Flows (Summary)� �(Millions�of�Yen)
Previous�Fiscal�Year(From�April�1,�2019��to�March�31,�2020)
Current��Fiscal�Year(From�April�1,�2020��to�March�31,�2021)
Item Amount AmountCash�and�cash�equivalents�at�beginning�of�year 37,069 35,009
Cash�flows�from�operating�activities 9,087 10,279
Cash�flows�from�investing�activities (3,579) (1,541)
Cash�flows�from�financing�activities (7,475) (3,044)
Effect�of�exchange�rate�change�on�cash�and�cash�equivalents (90) 52
Increase�(decrease)�in�cash�and�cash�equivalents (2,059) 5,746
Cash�and�cash�equivalents�at�end�of�year 35,009 40,756
Consolidated Statement of Income (Summary)� �(Millions�of�Yen)
Previous�Fiscal�Year(From�April�1,�2019��to�March�31,�2020)
Current��Fiscal�Year(From�April�1,�2020��to�March�31,�2021)
Item Amount Amount
Net�sales 82,379 87,171
Operating�income 9,906 11,582
Ordinary�income 10,145 13,461
Net�income 7,043 8,611
Website Information
PARAMOUNT BED HOLDINGS IR SearchSearch
For more detailed financial information, please refer to the various materials made available on the Company website.
https://www.paramountbed-hd.co.jp/ir
¥87,171million
Other¥14,269 million16.4%
Mattresses¥5,139 million5.9%
Beds¥26,154 million30.0%
Rental¥23,013 million26.4%
Ward and Residential Equipment¥7,297 million8.4%
Medical Equipment¥7,525 million8.6%
Parts, etc.¥3,771 million4.3%
Consolidated�net�sales�by�product
F inanc ia l Rev iew
Main Companies of the Paramount Bed Holdings Group Network
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●❶PARAMOUNT BED HOLDINGS CO., LTD.
Consolidated subsidiaries in Japan●❷Paramount Bed Co., Ltd.●❸Paratechno Co., Ltd.●❹Paramount Care Service Co., Ltd.●❺Sadashige Special Plywood Co., Ltd.
Non-consolidated subsidiaries in Japan●❻KP Service Co., Ltd.
Consolidated subsidiaries overseas●❼Paramount Bed Asia Pacific Pte. Ltd.●❽PT. Paramount Bed Indonesia●❾Paramount Bed (China) Co., Ltd.
Non-consolidated subsidiaries overseas●●Paramount Bed (Thailand) Co., Ltd.●Paramount Bed India Pvt. Ltd.●Paramount Bed Mexico S.A. de C.V.●Paramount Bed Vietnam Co., Ltd.Paramount Bed do Brasil Ltda.
◦�Net�sales�increased�5.8%�year�on�year�as�a�result�of�putting�a�new�bed�for�home�care�on�the�market,�and�solid�performance�in�the�rental�wholesale�business�for�assistive�products�despite�a�decrease�in�sales�of�beds�for�domestic�medical�facilities◦�Operating�income�increased�16.9%�year�on�year�as�a�result�of�an�increase�in�sales�of�new�products,�etc.�despite�increases�in�personnel�and�transportation�expenses,�etc.�due�to�the�expansion�of�operations,�and�the�strengthening�of�strategic�investments�for�the�medium�to�long�term
Key Points for the Fiscal Year under Review
Financial Highlight (Consolidated) F inanc ia l H igh l i gh t
4,000
2,000
10,000
8,000
6,000
3,000
6,000
12,000
9,000
100,000
80,000
60,000
40,000
20,000
50,000
120,000
100,000
80,000
60,000
40,000
20,000
100,000
200,000
150,000150
100
50
200
*The Company conducted a share split at a ratio of 2 shares per common share with April 1, 2021 as the effective date.
“Earnings per share” were calculated as though the share split had been conducted at the beginning of the previous fiscal year.
39th
38,048
87,171
38,952
82,379
11,582
39th
39th
2,625
8,611
3,450
7,043
39th
45.18
148.15
57.39
118.21
39th
4,646
9,906
4,940
39th
113,822107,066
154,358144,257
38th 38th 38th
38th 38th 38th
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¥87,171 million(Millions of yen) (Millions of yen) (Millions of yen)
(Yen) (Millions of yen) (Millions of yen)
Full year
¥11,582 million ¥8,611 million
¥148.15 ¥154,358 million ¥113,822 million
Net sales Operating income Net income
Earnings per share Total assets Net assets
Half year
Share Information (As�of�March�31,�2021)
Company Information (As�of�March�31,�2021) Company In foS tock I n fo
Company�Name� PARAMOUNT BED HOLDINGS CO., LTD.Head�Office 2-14-5 Higashisuna, Koto-ku, Tokyo 136-8671, JapanEstablished� October 1982Capital� ¥4,207 millionNumber�of�Employees� 3,614 (Consolidated)Business�Lines
Control or management of operating companies involved in the manufacture and sale of beds and mattresses, hospital furniture, medical equipment, etc. for medical and nursing care environments; services such as the inspection, maintenance, disinfection, and maintenance leases for beds and mattresses; the rental wholesale business for assistive products; etc. through the ownership of shares or through an equity interest.
Number�of�Shares�Authorized 126,000,000Number�of�Shares�Issued 30,877,487
* The Company conducted a share split at a ratio of 2 shares per common share with April 1, 2021 as the effective date.As a result, the number of shares authorized increased to 252,000,000, and the number of shares issued increased to 61,754,974.
Number�of�Shareholders 8,071Principal�Shareholders
Distribution of Shares
Distribution by Number of
Shares Held
Distribution by Type of Shareholder
23.2%Foreign companies, etc.22.4%Other domestic companies
3.0%1,000 to 4,9994.0%Less than 1,000
1.6%5,000 to 9,9995.3%10,000 to 49,9993.9%50,000 to 99,999
61.2%500,000 or more
21.0%100,000 to 499,999
23.6%Individuals and others0.8%Securities companies5.9%Treasury stock
24.1%Financial institutions
Name�of�shareholdersShareholders’�investment��
in�the�Company
Number�of�shares�held
Shareholding�ratio
(Thousands of shares) (%)
CTOK Co., LTD. 2,821 9.7The Master Trust Bank of Japan, Ltd. (Trust Account) 2,816 9.7LLAGE WOOD Co. 2,073 7.1NIU VALLEY CAPITAL LLC 1,379 4.7NORTHERN TRUST CO. (AVFC) RE FIDELITY FUNDS 1,237 4.3Custody Bank of Japan, Ltd. (Trust Account 9) 1,047 3.6Michihide Kimura 911 3.1Kyosuke Kimura 907 3.1Kenji Kimura 903 3.1Tomohiko Kimura 873 3.0
* Although the Company holds 1,814,890 shares of treasure stock, the shareholding ratio is calculated after deducting the shares of treasury stock.
Shareholder Memo
◦ContactTEL:�+81-3-3648-1100�(Main) FAX:�+81-3-3648-5781Business�Hours:�Monday�to�Friday,�9:00�a.m.�to�5:20�p.m.*Excludes�national�holidays,�summer�holidays,�and�new�year�holidays.
Business�yearFrom April 1 of each year to March 31 of the following year
Ordinary�general�meeting�of�shareholdersJune of each year
Record�date�of�the�aboveMarch 31 of each yearWhen necessary, other record dates will be determined on an extraordinary basis of the prior notification.
Final�date�for�shareholders�to�receive�dividendYear-end�dividend� March 31 of each yearInterim�dividend� September 30 of each year
Method�of�public�noticeElectronic public notice will be made. However, if it is impossible to publish public notices electronically because of unavoidable circumstances, the public notices shall be made by publication in
“The Nikkei” newspaper.The Company’s URL for public notice https://www.paramountbed-hd.co.jp
Shareholder�register�administrator3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo (NMF Takebashi Building 6F)Tokyo Securities Transfer Agent Co., Ltd.
Handling�office101-0054 3-11 Kandanishiki-cho, Chiyoda-ku, Tokyo (NMF Takebashi Building 6F)Head Office, Tokyo Securities Transfer Agent Co., Ltd.(Contact) 0120-49-7009Handling operation is conducted in main branch and all domestic branches of Sumitomo Mitsui Trust Bank, Limited.
Mailing�address�(Contact�address)2-8-4 Izumi, Suginami-ku, Tokyo 168-8522Operations Center, Tokyo Securities Transfer Agent Co., Ltd.(Contact) 0120-49-7009
[Procedures Related to Shares]● Applications for change of address or for purchase demands of shares less than one unit. Please send such notifications or applications to the securities company
where your account is held. However, for procedures related to shares registered to a special account, please apply to Tokyo Securities Transfer Agent Co., Ltd., which is the administrative organization for special accounts.
● Applications for payment of dividends payable These are handled by Tokyo Securities Transfer Agent Co., Ltd., which is
the shareholder register administrator for shares of the Company.